Assume Downer.com was organized on May 1, to compete with Despair, Inc.-a company that sells de-motivational posters and office products. The following events occurred during the first month of Downer.com's operations. a. Received $87,000 cash from the investors who organized Downer.com Corporation. b. Borrowed $26,500 cash and signed a note due in two years. c. Ordered computer equipment costing $14,000. d. Purchased $9,500 in equipment, paying $3,300 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (C), paid for half of it, and put the rest on account. Required: 1. For each of the events (a) through (e), perform transaction analysis and indicate the amount of effect on the accounting equation. (Enter any decreases to account balances with a minus sign.) Assets Cash Equipment Accounts Payable Liabilities ST Notes Payable LT Notes Payable Shareholders' Equity Contributed Capital Beg. a. 87,000 b. 26,000 87,000 26,500 C. d. 14,000 6,200 7,000 e. End. 113,000 14,000 7,000 6,200 26,500 87,000
Assume Downer.com was organized on May 1, to compete with Despair, Inc.-a company that sells de-motivational posters and office products. The following events occurred during the first month of Downer.com's operations. a. Received $87,000 cash from the investors who organized Downer.com Corporation. b. Borrowed $26,500 cash and signed a note due in two years. c. Ordered computer equipment costing $14,000. d. Purchased $9,500 in equipment, paying $3,300 in cash and signing a six-month note for the balance. e. Received the equipment ordered in (C), paid for half of it, and put the rest on account. Required: 1. For each of the events (a) through (e), perform transaction analysis and indicate the amount of effect on the accounting equation. (Enter any decreases to account balances with a minus sign.) Assets Cash Equipment Accounts Payable Liabilities ST Notes Payable LT Notes Payable Shareholders' Equity Contributed Capital Beg. a. 87,000 b. 26,000 87,000 26,500 C. d. 14,000 6,200 7,000 e. End. 113,000 14,000 7,000 6,200 26,500 87,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Dhapa
Transcribed Image Text:Assume Downer.com was organized on May 1, to compete with Despair, Inc.-a company that sells de-motivational posters and office
products. The following events occurred during the first month of Downer.com's operations.
a. Received $87,000 cash from the investors who organized Downer.com Corporation.
b. Borrowed $26,500 cash and signed a note due in two years.
c. Ordered computer equipment costing $14,000.
d. Purchased $9,500 in equipment, paying $3,300 in cash and signing a six-month note for the balance.
e. Received the equipment ordered in (C), paid for half of it, and put the rest on account.
Required:
1. For each of the events (a) through (e), perform transaction analysis and indicate the amount of effect on the accounting equation.
(Enter any decreases to account balances with a minus sign.)
Assets
Cash
Equipment
Accounts
Payable
Liabilities
ST Notes
Payable
LT Notes
Payable
Shareholders'
Equity
Contributed
Capital
Beg.
a.
87,000
b.
26,000
87,000
26,500
C.
d.
14,000
6,200
7,000
e.
End.
113,000
14,000
7,000
6,200
26,500
87,000
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